Kang Min-jung: "70,000 College Graduates Start Social Life as Delinquents... Student Loans Should Be Converted to Interest-Free"
![[Image source=Yonhap News]](http://www.asiae.co.kr/news/img_view.htm?img=2020070614050044996_1594011900.jpg)
[Asia Economy Reporter Wondara] Kang Min-jung, a member of the Open Democratic Party, pointed out during the National Assembly audit that there are as many as 75,000 short-term delinquent and defaulting student loan borrowers, and argued that student loans should be converted to interest-free loans.
On the 7th, at the National Assembly Education Committee audit, Kang urged Yoo Eun-hye, Minister of Education and Deputy Prime Minister for Social Affairs, to convert student loans with interest rates of up to 3.85% into interest-free loans.
According to data submitted by the Korea Student Aid Foundation to Kang Min-jung’s office, as of the end of July this year, the number of short-term delinquent student loan borrowers was 24,034, and the number of defaulting borrowers was 50,550. The total number of people who received student loans was 2,407,733.
For the second semester, the student loan interest rate is 1.85% per annum, while the delinquency interest rate for short-term delinquencies and defaulted loans is 3.85% per annum, which is higher than recent commercial bank interest rates.
Kang said, "There are about 75,000 young people starting their social lives as financial delinquents and defaulters," adding, "In the COVID-19 era, where it is difficult to find part-time jobs, student loans, of all things, should be provided as interest-free loans."
Hot Picks Today
Taking Annual Leave and Adding "Strike" to Profiles, "It Feels Like Samsung Has Collapsed"... Unsettled Internal Atmosphere
- There Is a Distinct Age When Physical Abilities Decline Rapidly... From What Age Do Strength and Endurance Drop?
- "One Comment Could Lead to a Report": 86% of Elementary Teachers Feel Anxious; Half Consider Resignation or Career Change
- "After Vowing to Become No. 1 Globally, Sudden Policy Brake Puts Companies’ Massive Investments at Risk"
- On Teacher's Day, a Student's Gifted Cake Had to Be Cut into 32 Pieces... Why?
She also proposed, "If a full scholarship system is introduced centered on 10 major national universities, a budget of 716.1 billion won would be required," and added, "Even if free education like Germany cannot be achieved immediately, it is necessary to focus support on regional national universities first. This could also create an environment to alleviate the concentration in the metropolitan area and reduce competition in college entrance exams."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
